Question

1-22 Schedules M-1, M-2. P Corporation reports the following information for 2020: b. What are the nature and Net income per books.. Federal income taxes (accrued) Net capital loss Travel and meals (50% portion disallowed for FIT) Proceeds of life insurance on president Insurance premiums on life of president Tax-exempt interest... ACRS deductions in excess of straight-line depreciation used for book purposes Excess charitable contributions... Unappropriated retained earnings (beginning of 2019) Dividends paid during the year Complete Schedules M-1 and M-2 below. $125.730 10,500 3,600 300 75,000 1.250 3,500 1,400 520 200,000 23,500 Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ 4 Income subject to tax not recorded on books this year (itemize): 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): $ a Depreciation a Depreciation b Charitable contributions $ b Charitable contributions Travel and entertainment. $ 9 Add lines 7 and 8 6 Add lines 1 through 5 10 Income (page 1. line 28) --line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year 5 Distributions: a Cash 2 Net income (loss) per books. b Stock 3 Other increases (temize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6. 4 Add lines 1, 2, and 3 8 Balance at end of year (ine 4 less Ine 7) с Form 1120 2019)

Answer 1

Scedule M1-Reconciliation of incoe(loss) per books with income per return

1.Net income (loss) per books	$125730	7.Income recorded on books this year not included on this return (itemize):
2.Federal income tax	$10500	a.Tax-exempt Interest	$3500
		b.proceeds of life insurence on president	$75000
3.Excess of cap losses over cap gains	$3600	8.Deductions on this return not charged against book income this year (itemize)
4.Income subject to tax not recorded on books this year (itemize):		a. Depreciation	$1400
5.Expenses recorded on books this year not deducted on this return (itemize): .		b. charitable Contributions	-
a. Depreciation	-
b.charitable Contributions	$520
c.Travel and entertainment	$150
d.Insurance premium on life of president	$1250
6.total	$141750	9.Total	$79900
		10.Income	$61850

.Scedule M2-Analysis of Unappropriated Retained earnings per books

1.Balance at the begining of the year	$200000	5.distributions:
2.Net income/loss per books	$125730	a.cash	-
3.other increses	-	b.stock	-
		c.property	-
		6.other decrease-divident	$23500
4.add lines 1,2,3	$325730	7.add lines 5,6	$23500
		8.balance at the end of year	$302230